War impacts energy market, Australia to reserve 20% of natural gas exports for domestic use

Middle East War Key News

(Central News Agency, Sydney, May 7th, comprehensive foreign report) Australian Energy Minister Chris Bowen said today that Australia will prevent the risk of energy shortages by mandating major natural gas exporters to reserve one-fifth of their fuel for domestic use.

Australia is one of the world's largest exporters of liquefied natural gas (LNG). As the Middle East war disrupts the global energy market, the demand for this important fuel continues to rise.

To mitigate the impact of "global price volatility" on the domestic market, Australia will require its largest natural gas exporters to keep 20% of their export production for domestic sales.

Bowen told reporters: "We have been mitigating the impact of global energy shocks on Australians by investing in reliable, self-controlled renewable energy, and by ensuring that more of the natural gas we need stays in the country."

Australia is an important LNG supplier to many Asian countries. Since the United States and Israel launched a joint attack on Iran at the end of February, energy prices in Asia have risen sharply.

According to data from the Asia Natural Gas and Energy Association, about 40% of Japan's LNG comes from Australia.

To address the concerns of trade partners, Bowen emphasized that this policy will not affect existing contracts.

He added: "We have consulted closely with our trade partners to ensure that the world fully understands that Australia remains a reliable energy supplier."

Australia's isolated geographical location, coupled with only two refineries in the country, makes it highly exposed to disruptions in global fuel supply.

As Iran almost completely blocks the Strait of Hormuz, impeding about one-fifth of global fuel transportation, Australia will take action to strengthen fuel supply security.

Australian Prime Minister Anthony Albanese announced yesterday that a national fuel reserve of 1 billion liters will be established to prevent an energy crisis triggered by the Middle East war. (Translator: Liu Wenyu) 1150507

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